Tax system

Georgian tax model – benefits for local and international businesses

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According to the Doing Business Report commissioned by the World Bank,Georgia ranks 9th in the world in 2018 by ease of doing business. Moreover, Georgia is a country with the fourth smallest tax burden in the world, according to the Tax Misery Index Ranking by the Forbes Magazine, which is perfect rating for developing country.

The Government of Georgia is dedicated to a fair and transparent tax environment, protection of business interests and reliable tax administration system which is collected on both state and local levels here.

The country has only six taxes of which five (personal income tax, corporate income tax, Value added tax, excise tax and import tax) are on the national level and one – property tax is a local tax. Personal income tax, dividend and royalty is 5% and the most important, the country doesn’t have payroll, social security, capital gains, wealth or inheritance tax.

According to the Economic Liberty Act, Government is not allowed to increase national tax rates (except excise tax) or number of taxes without national referendum.

As for the individuals who are just starting economic activities in Georgia, they are required to register with the GTA prior to their start-up and obtain a Tax ID. Georgian citizen non-entrepreneur individuals may use a Personal ID and foreign citizen non-entrepreneur individuals have to register with the GTA prior to filing their annual personal income tax returns and obtain a Tax ID.

According to Tax Code of Georgia, if a company produces goods intended for export market, it can apply for a license about “Internal Processing Regime” to the Ministry of Finance. This license will grant the company a right to import raw materials without paying import/customs tax and VAT on these materials.

Furthermore, the Tax Code of Georgia gives an opportunity to the companies to use accelerated depreciation on capital assets (including full deduction during first year) and loss carry forward for corporate profit tax purposes (10 years).

Nowadays, Georgia has Double Taxation Avoidance Treaties with 52 countries and there’s no restrictions on currency convertibility or repatriation of capital and profit.

According to Global Corruption Barometer of Transparency International, 0% of interviewed reported paying bribe to the tax administration and World Economic Forum’s Global Competitiveness Report named Georgia among low tax rate countries, this information with all the above-mentioned data emphasize the simplicity and reliability of Georgian tax system for any interested person.

Author: Tamar Devdariani © BUSINESS GEORGIA

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New Generation of Start-ups and entrepreneurs in Georgia

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Georgia became startup-friendly country especially after the opening of the First Technology Park in 2016, Tbilisi.  Tech Park started providing young creators with high quality equipment and great possibilities to turn their ideas into reality and it gave a big stimulus to young people to develop their businesses and contacts with potential investors.

In 2016, newly started project Start-up Georgia attracted 726 applicants from different regions of Georgia. 146 applicants were regarded as high technology business ideas and 580 were submitted as creative and innovative ideas. These entrepreneurs got great financial and theoretical support for developing their businesses.

Eight lucky winners of these startups became even globally known after presenting their innovative projects in front of 50 American investors in Silicon Valley, in 2017. Georgian start-ups also received specially organized training from local experts and attended special event dedicated to our country too.

Setting up a business in Georgia is a straightforward process and it creates even more business-friendly atmosphere for newcomers. The system is very efficient because it is based on promotion of the establishment of new enterprises.

For registration any start-up or firm must follow these 3 stages in Georgia: 1) Pay the registration fee – 100 GEL but if it’s very urgent one can fasten the procedure by doubling this amount, 2) Register the company with the Entrepreneurial Register and get an identification number and certificate of state and tax registration with no charge and 3) Open a corporate account in the bank from 10 to 100 GEL (depending on the bank) and the most important, all these procedures only take 1 day to complete.

Nowadays, Georgian startups also have great ability to show their products in various exhibitions, free-markets, etc. among of which Startup Market Expo’s annual exhibition is the guarantee of success for both small businesses and startups which introduce their products in front of potential customers. Startup Market Expo was already held in 2016 and 2017. Fortunately, organizers aren’t planning to lose pace.

Lately, banks in Georgia started making contribution in developing businesses. Most of them offer financial or non-financial support to business newcomers and have specially composed terms of loans for them, with personal payment schedule. These programs support and stimulate new startups and the information about each program is easily accessible for any interested person on banks’ online platforms.

It must be mentioned that according to the World Bank Group’s Doing Business 2018 report, Georgia has improved its performance by 7 positions over the past year, and has moved from 16th to 9th place. Doing Business rating encompassed 190 countries, and Georgia is among the leading 10, which objectively reflects the results of the economic reforms of the Georgian Government.

Of course entrepreneurial spirit of Georgia has a positive effect on the country’s economy as a whole but each entrepreneur who sets up a business, should make it clear will their project succeed or not before taking on financial risks in the hope of profit, as long as, companies and people standing on the another side are expecting the same from them too.

Author: Tamar Devdariani © BUSINESS GEORGIA

Georgian Agriculture

Changing Agri-Business of Georgia

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Agricultural traditions are the main part of Georgian cultural heritage and mentality, as long as favorable climate with fertile soil make it one of the most productive economic sectors for the country and support production of a variety of high-value agricultural products including wine, nuts, citrus fruits, peaches, apricots, etc.

After signing a Deep and Comprehensive Free Trade Area (DCFTA) with the European Union in 2014, Georgia can produce agricultural products meeting the required safety and security standards and that makes it even more favorable for new investors of European markets, as longs as they can benefit from rising consumption on the local market, which is complemented by the Duty-free access to 900 million foreign markets under this agreement.

Georgia has emphasis on labor-intensive crops such as tea and grapes. In 2017, after the three-year study conducted by experts from seven countries, Georgia officially acknowledged as the cradle of wine and was invited to be a host of solo exhibition illustrating its oldest traditional viticulture and wine-making in Bordeaux, Paris.

Nowadays, wine export growth gives positive prospects to the sector, for instance after the data published in National Wine Agency of Georgia in January-February (2018) 10,8 mil. bottles of wine have been exported to 38 countries worldwide, that is 23% higher than the similar data of the last year.

There is fierce competition connected to the tea in Georgia, because  strong local manufacturers are not allowing the international players to take over tea entirely but as Euromonitor International reveals, consumers of tea in Georgia stay quite conservative and most brands produce only black or green tea.

According to the Strategy for Agricultural Development in Georgia for 2015-2020, it is estimated that 25% of Georgia’s total land area is classified as permanent pastureland and about 70-80% of pasturing is self-regulated among local and nomadic pasture users, which gives good grounds for stockbreeding, but without having strong supporting policies small farmers which make 95% of all farmers, typically cultivating around one hectare of land with low output aren’t able to compete with imported products, which except dairy food and beverages mostly relies on meat products, as well as grains and egg. Generally, Georgia imports 80% of its packaged food products which has a significant negative impact on its trade balance.

The Georgian government identifies agriculture as a priority for development and has also set up the Agriculture Investment Fund to support the sector by providing credits for farmers. The projects of building new agricultural products processing plants can get grant from the government with a total value of up to 250 000 USD. In addition to this, investor can symbolically buy state owned immovable non-agricultural property only for 1 GEL.

Government of Georgia intends to create a favorable business environment because full use of Georgian agriculture potential is vitally important for country’s economy, for this purpose, in 2015, Parliament passed a bill allowing foreigners to own the land but with certain limitations as long as foreigners now may own agricultural land if they inherit it, co-own the land through marriage to a Georgian citizen or by being a member of a Georgian citizen household or hold a residence permit.

Georgia has 22 micro-climates varying from cool and dry to warm and humid. These diversified micro-climates allow for a longer than normal harvesting season and a range of growing conditions. Soils are of volcanic origin in the river valleys, which tend to be quite fertile and reasonably easy to cultivate.

Country has easy and cheap access to water as well and the prices of other utilities such as energy and gas is low too, but on the other hand, according to the 2017 budget, by GEL 83,000,210 reduced agricultural financing resulted in decreased funding for financing programs like the agricultural development program, food safety, epizootic goodwill and plant protection, viticulture, implementation of scientific research activities and so on.

During the last years, as a result of good international cooperation, the positive tendencies are being observed in regard to expanding the export market, increase of production and attracting the investment in the agricultural sector. But local production is still under strong necessity of boosting as long as even though having rich resources, trade balance between import and export is still unenviable in Georgia.

Author: Tamar Devdariani © BUSINESS GEORGIA

Photo: Tamuna Ubiria © BUSINESS GEORGIA

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Construction sector of Georgia is growing rapidly

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Construction & Building is the global business of creating physical infrastructure such as residential buildings, highways, bridges, factories, airports and power plants. Normally the job is managed by the construction manager, supervised by the project manager, design engineer or project architect.

While these people work in offices, every construction project requires a large number of laborers, carpenters, and other skilled tradesmen to complete the physical task of construction.

In Georgia, in the first quarter of 2017 there were 58416 employees in construction business, followed by second and third quarter 67351 and 71394. From the 2011 to 2017 years there isn’t much difference in employment in construction business. Tbilisi is the leader city in a construction employment than other cities. In 2016, 59.6% of employed people were in Tbilisi. There were 814 employed persons, representing 1.1% of all employed people in Georgia.

But there is too much difference in compensation figures of employees. From 2008 index of reimbursement has permanently went up. For example, in 2008, 2009 and 2010 the average reimbursement was GEL 634, but in the first and second quarter of 2017 it was GEL 1,951 – 2,011.

According to the National Statistics office of Georgia Business construction turnover past few years isn’t stabilized. It has raised rapidly. In 2013, 2014 and 2015 turnover was 3,244, 3,807, and 5,287 million GEL.

 

Overall, investment rates have fluctuated during the time depicted on the graph. It raised in 2014 and in contrast, lowest rates of investment were in 2009 and 2011.

Its important to mention that in 2017, 10 495 construction permits have been issued throughout Georgia.

As for the completed constructions in 2017, 2,2 million square meters of space has been completed. The number of completed constructions increased by 1.3% in 2017.

In the first three quarters of 2017, construction sector investment was USD 241 million. And in 2017 the figure was 86% more than in 2016.

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Georgian Mandarin export insights

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Georgian mandarin is cultivated in Western regions of Georgia, in Adjara, Guria, Samegrelo and Apkhazia.

Russia and Ukraine are leading Georgian mandarin export countries, followed by Armenia, Uzbekistan, Kazakhstan, Poland, Qatar and Belarus. In 2017 Georgia has exported 21 000 tons of standard mandarin to these countries. In addition, 7 700 tons of non-standard mandarins have already been processed in Georgia.

In 2016 The Ministry of Agriculture of Adjara payed 10 tetri in subsistence farms in 1 kg of non-standard mandarin, which remained in 2017 also.

Additionally, the export of citrus has significantly reduced in Russia from the de facto republic of Abkhazia. The reason was the harmful insect Asian Stink Bug and the damage has deteriorated the quantity and quality of the crop. In 2016, while Apkhazia exported about 60-68 tons daily to Russia, unfortunately this figure decreased to 25 tons in 2017.

Adjara situation was different. Avtandil Meskhidze, Agriculture Minister of Adjara said that Asian stink bug made minimal damage to mandarin in this region.

The 4 million GEL is envisaged in the 2017 state budget to fight against the Asian Stink Bug spread across Georgia. According to the Deputy Minister of Agriculture, Giorgi Khanishvili, the Ministry of Agriculture of Georgia plans to attract major funds through donor organizations.

110 thousand hectares of area, homestead plots and large arrays were treated in the municipalities of Samegrelo, Guria, Imereti and Adjara regions, where the invasive pest is widely spread, treatment activities were implemented through using special equipment, machinery, tractor aggregates and aviation under the frame of the state program – to fight against the Asian stink bug.

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INVESTMENT OPPORTUNITIES IN ENERGY SECTOR OF GEORGIA

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Over the last decade electricity consumption in Georgia has grown largely in line with real GDP growth rate and reached 10.4 TWh in 2015. If This trend continues, in 10 years Georgia will have significant generation deficit. Between 2004 and 2010 as a result of renewal and rehabilitation of existing HPPs generation also grew significantly.

Since 2012 twelve new HHPs have been commissioned, but as consumption continues to rise not only in Georgia, but in neighboring countries as well, there is great opportunity to develop new power plants to keep up with this ever increasing demand. According to estimates, only 25% of Georgia’s energy potential is exploited. Meaning that there is huge untapped potential, mostly from hydro resources, but also from wind, solar, geothermal and biomass sources as well.

In 2015, Georgia’s electricity generation reached 10.8 TWh, of which hydropower accounted for 78% (8.5 tWh). Because of seasonality of electricity generation, Georgia had to import 0.7 TWh during winter months, but still managed to export 0.7 TWh to its neighbors during summer.

Currently, 17 hydropower plants are under construction, seven of them, with total installed capacity of around 300 MW, started in 2015. By the end of 2015, a 230 MW gas-fired combined cycle Thermal Power Plant was commissioned and construction of first Wind Power Plant in Georgia has started. In 2016, construction works on 14 new HPP’s will commence. Georgian Energy sector is developing rapidly and with all the competitive advantages that country offers, it’s not too hard to see why.

Starting from 2004 generation increased significantly, resulting in Georgia becoming net exporter of electricity between from 2007 and 2011.  With the completion of the HPPs currently under construction, exports are expected to grow in the summer period, however during winter Georgia continues to use expensive electricity form TPP’s and import. Without additional Power Plants Georgia’s generation capacity will not be sufficient to meet domestic demand during winter and in the long term, as per capita electricity consumption continues to grow, estimated deficit by 2025 is more than 5 TWh.

Starting from 2008 Georgia has liberalized and deregulated energy market. Renewable projects are based on Build-Own-Operate (BOO) principle.  There are no tariffs set for newly built HPPs, investor is free to choose market and negotiate price. No fee is required for the connection to transmission grid. No license is required for export and new HPPs have priority access to the capacity on the new interconnection to Turkey. Generation and export activities are exempted from VAT tax.

With abundance of high mountains and fast-flowing rivers, Georgia has competitive advantage over neighbors in terms of generation cost. Most attractive export market is Turkey who ranks first in Europe and second in the world after China in terms of electricity demand increase. Turkey experiences electricity shortage during summer months, while Georgia has generation surplus. Over the last decade, Turkey’s electricity consumption in 2014 was 257.22 TWh, with generation deficit of 5.2 TWh. The Turkish Electricity Transmission Company (TEIAS) forecasts that Turkish electricity consumption will grow by 5.5% on average annually. Almost 80% of electricity was generated by gas and coal-fired power plants. So, even with lower oil and gas prices, it’s expected that electricity prices in Turkey will remain high.

Georgia has well developed transmission grid infrastructure. Whole territory of Georgia is covered with over 3,000 km high, medium and low voltage lines and about 100 substations. In 2013, a new 400 KV line with HVDC back-to-back substation connecting Georgia with Turkey was commissioned, adding to already significant transmission capacity with all neighboring countries. By the end of 2015, cross border transmission capacity will reach 5,000 MW.

In 2015, Network Development Plan was approved by the government, which will ensure continuous improvement of grid and seamless integration new generation capacities.

HYDRO POWER PLANTS

Georgia has more than 20 000 rivers and almost 300 of them provide excellent opportunity for hydropower generation.  Georgia is one of the top countries in terms of water resources per capita and it’s logical that today 78% of total electricity is generated from Hydro Power Plants (8.5 TWh). Despite this, there still is vast untapped potential, as only 25% of economically feasible Hydro potential is being exploited today. Georgia could produce additional 25 TWh electricity annually with hydro resources alone. There are over 60 potential HPP projects identified by the Ministry of Energy, the list is public and can be seen on the website of Ministry of Energy.

All new hydro power plants are totally deregulated, license for export are not required and have priority access to new transmission line to Turkey. Investor is free to choose the market and negotiate the price. HPPs with installed capacity of 13MW or less don’t require generation license and HPPs that have installed capacity of 2 MW or less don’t need environmental impact permit either. They can sell generated electricity to direct consumers without third party.

Identified projects are only small drop of water in the ocean of Georgia’s Hydro Potential. Any investor is welcome to reveal new opportunities by themselves and start developing power plants.

THERMAL POWER PLANTS

TPPs are source of guaranteed electricity supply. Usually, TPPs are in standby mode, ready to supply the system when needed, typically in winter period. Last year TPPs accounted for 21.9% of total generation, meaning they are vital to Georgia’s electrical stability. Because of this, even when in standby mode TPPs receive payment to cover maintenance and fixed costs. Tariffs are set by regulator.

By the end of 2015, new 230 MW combined cycle TPP, first of its kind in Georgia, was commissioned. Project was developed by Georgian Partnership Fund and will was built by Turkish company Çalik Enerji.

Currently, Georgian Energy Development Fund is working on another 250 MW CCGT project. Power plant will be 250 MW and will be commissioned in 2019, with another 250 MW is being considered for the future.

WIND POWER

Georgia offers very attractive opportunity for investments in wind power plants, with estimated potential of 4 TWh. Wind power offers great addition to hydro power generations, as wind generation is higher during winter, when hydro generation is lower. According to scientists, the share of the wind power stations in the world power engineering will be 10% by the year 2025.

In 2007 the MOU was signed between the Government of Georgia and the Georgian American company “Karidani” on the construction of 24 MW wind plant in the suburbs of Tbilisi Sea. The cost of the project is around 24 million dollars.

Currently, pilot 20 MW project, Kartli 1, is under construction. Developed by Georgian Energy Development Fund, this projects is one of the most efficient wind plants in the world and became first government project in the region which received EBRD project funding without additional guaranties from the state. Project capacity can be expanded up to 150 MW in the future. Two more wind projects are under development with many more under consideration.

By the natural energetic potential, the territory of Georgia is divided into four zones:
1. A high speed zone – mountainous regions of Southern Georgia, Kakhaberi Vake and the central region of Kolkheti Valley. The working duration period is more than 5000 hours per year.
2. A partly high speed and low speed zone – the Mtkvari gorge from Mtskheta to Rustavi, Southern part of Javakheti, Black Sea line from Poti to Kakhaber Vake. The working duration is 4500-5000 hours per year.
3. A low speed mountain range effective exploitation zone – Gagra mountain range, Kolkheti Valley and Eastern Georgian lowlands.
4. A low speed mountain range limited exploitation zone – Iori Zegani and Sioni water reservoir.
The rest of the mountain ranges on the territory of Georgia can not be used for exploitation by wind power stations.
The researches conducted on the territory of Georgia showed some suitable areas for the construction of wind power stations.

 

SOLAR

Due to the geographical location of Georgia, the emanation of the Sun is rather high. In most regions of the country there are 250-280 sunny days in a year, which is approximately 1,900-2,200 hours per year. The annual radiation of the Sun varies depending on regions from 1,250-1,800 KWh/m2, while the average sun radiation equals 4.2 KWh/m2. The total annual solar energy potential in Georgia is   estimated to be 108 MW, which is equivalent to 34,000 tons of standard fuel.

 

GEOTHERMAL

According to modern hydro-geological studies, the Georgian geothermal water reserves reach 250 mln m3 per year. At present there are more than 250 natural and artificial water channels where the average temperature of geothermal waters ranges from 30 to 110 C, while the total debit is 160,000 m3 per day and night. These water channels are grouped into 44 deposits. Within the territory of 3,500 km there are bore-hole wells with the water temperature of 85 C and more. Up to 80% of the geothermal deposits are in Western Georgia. In the Zugdidi-Tsaishi geothermal area, there are now 9 productive, 7 reinjections and 3 observation bore-hole wells which are considered to be exploitable.

 

BIOMASS

Thanks to an advantageous geographical location and a climate favorable to forest and agricultural development, Georgia is endowed with major potential for biomass power plants, especially for producing heat and hot water. Biomass could be of the most important sources of power supply in rural areas, given that forests cover 40% of the country’s total territory.

 

 

Source: Ministry of Energy of Georgia

               National Investment Agency of Georgia

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Five Reasons to Invest in Georgian Agriculture

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Agriculture has both big economic and social functions in Georgia. The sector employs more than half of the country’s work force and for many families, income from agriculture is the only source of their livelihood. At present, interest in the private sector, as well as in the volume of investment is not very high. However, there are many examples of successful projects owing to local and foreign investment.

 

Here are the main reasons for a favorable investment environment in the agricultural sector of Georgia.

 

Natural Conditions

Georgian agriculture has favorable natural conditions and resources for agricultural production. We have 22 different climates in the country, including both cold and dry as well as warm and humid. Almost half of the country’s total area can be used as ​​agricultural land. Further, there are naturally favorable conditions for grain, vegetable, fruit and sub-tropical crops.

 

Almost the whole territory of the country can be considered as fertile land where a variety of agricultural crops are able to be harvested. At the same time, the country is rich in water resources and irrigation systems exist in almost every region.

 

Investment Direction:  Nowadays, cultivars such as nuts or so-called “dwarf nuts,” blueberry, blackberry and pistachio are popular. They are well adapted to the local environment, characterized by their high productivity, selling price and a core market that perfectly satisfies producer interest.

 

Low Production Costs

Hiring workers in the agricultural sector is quite inexpensive. More than 60 percent of workers are employed in agriculture. Between the country’s industrial sectors, agriculture is the lowest paid overall. In the first half of 2016, the index was GEL 1 per month. This number is much lower as compared to the salaries in most EU countries. Additionally, the local labor force, as a rule, is quite experienced and well aware of the agricultural production process. Most Georgian farmers have been involved in agricultural activities since their childhood and they possess a significant amount of knowledge.

 

Energy resources required and used in the agricultural production process in Georgia are considered to be low volume. Irrigation water per hectare in eastern Georgia costs GEL 75 and GEL 45 in western Georgia. To compare these prices with those in Europe, it is higher in many European countries:  Greece, EUR 73 to 210, Italy EUR 30 to 150, Spain EUR 62 and Portugal EUR 120.

 

It should also be noted that the purchase or lease of agricultural land in Georgia is also inexpensive and without any limitations.

 

Investment Direction:  wheat, berries, corn and potatoes.

 

DCFTA with the EU

After the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, Georgia can produce agricultural products to meet the required safety and security standards which would then able them to enter the EU market with a zero custom tariff. Additionally, Georgia has an agreement with China, Turkey and the former Soviet countries about tariff reduction. These contracts simplify product export and expand the market for goods produced in Georgia which, of course, is attractive for investors.

 

In the process of trade with the EU, sector modernization and increasing its efficiency is needed in order for Georgia to meet required standards as well as further enable the entry of foreign companies into the country.

 

Investment Direction:  Bioproduction. Every day, the demand for bio products is increasing both in the EU and on the world market. A wide range of bio products can be produced by Georgian farmers. Relevant legal data about bio production also exists in the country. In 2006, the Parliament adopted the Law  on Biological Agricultural Industry which serves to regulate issues concerning the biological agricultural industry.

 

In Georgia, bio products such as wine, fruit juices, honey, various kinds of fruits (for example, persimmon, which is quite popular in European countries), vegetables, dairy products and others can be produced.

 

State Supports Agriculture

Financing for the agricultural sector has increased sharply since 2012 and the development of this sphere is one of the top priorities for the country. The state implements various large-scale projects to support agriculture and increase agricultural production.

 

In the 2017 state budget, agriculture will be financed by GEL 238 million. Of particular note:  low interest agro credit (GEL 42 million), viticulture development (GEL 32.4 million), food safety and plant protection (GEL 22.7 million), modernization of ameliorative systems (GEL 49 million), support for agricultural cooperative development (GEL 5.3 million), implementing agricultural research activities (GEL 6.6 million) and agricultural insurance (GEL 5 million).

 

Of particular note is that Georgia’s agro credit program has financed more than 700 existing and 150 new enterprises at low interest rates since 2013.

 

Additionally, the state is actively engaged in the following directions:  farmer awareness raising and effective agricultural extension services, data collection for market information, information gathering, processing and effective delivering of this information for workers employed in agriculture sector, compiling a farmer register, etc.

 

Investment Direction:  The state actively supports the development of cooperatives and provides certain benefits and preferences for them, especially for multi-functional cooperatives. The cooperatives need to have sufficient financial as well as human resources in order to develop several directions of agricultural production as well as relevant services for farmers.

 

Agrotourism

In 2016, the number of visitors to Georgia exceeded 3 million while revenue from international tourism amounted to USD 2.16 billion. There are extensive opportunities for tourism development in the country with foreign visitors coming to Georgia year round. They can take part in agro tours and be involved in local agricultural activities or participate in the vintage process, harvest time, learning to make traditional Georgian products and spend time in a unique rural environment which is both new and interesting for them.

 

When discussing the issue of agro tourism, a look at the list of existing opportunities shows 102 resorts, 182 lands for resorts 2,400 mineral springs, 12,000 historical and architectural monuments (three are included in UNESCO’s Intangible Cultural Heritage of Humanity list), 11 national parks, 41 natural monuments and two protected landscapes.

 

The Georgian National Tourism Administration offers free training for those who want to start up a business in the agro tourism sphere.

 

Investment Direction:  Village hotels, farms, wine tours, historical monument tours.

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Plans made for china

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Formation of export-oriented enterprises, free trade agreement with China, Anaklia port and Startup Georgia – there are few of the main subjects, in huge interview with Business Georgia.

Here is a brief summary of the whole interview that our readers can find in Business Georgia July magazine.live streaming film The Circle online

One of the main issues that have been discussed with Mr. David Saganelidze, the head of Partnership fund is relation with China. “Georgia’s future, but also world’s will be closely related to China’s economy. China is a country that made a fantastic leap in recent years – it gave an example of development for the world, how such a giant country can move forward so fast and whether we want it or not, we got involved in that huge project called Silk Rode or as the president of China says “one zone, one road”. Our role, main purpose is to find our place within this project. Because every country tries to find its place, position, strategically and geographically we have precisely that location, which should condition our great success in this direction.

The interview covered the topics related with the investment projects implemented by Asian Infrastructure Investment Bank. “When the Asian Infrastructure Investment Bank was being created, Georgia became the founder country during the last days. We got to the system in the last days. Two months ago, on the Boao’s Forum, the head of investments department of our fund and I met the head of this bank and its working group. We discussed 3 areas in the direction of infrastructure. One of the discussed areas was rehabilitation  of the railway, the second one was the ways that are considered as a priority and the third one is high-speed railway that is considered as a Baku-Batumi direction and then from Batumi to Istanbul. This is unique project, which can bring visitors from Baku to Batumi in 4 hours and the most important thing is that it will pick up potential passengers on the way.”

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SEEDSTARS WORLD IS COMING TO TBILISI TO FIND THE BEST STARTUP IN GEORGIA

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TBILISI, GEORGIA, June 1st, 2016 – Seedstars World, the global seed-stage startup competition for emerging markets and fast-growing startup scenes, is coming to Tbilisi for the first time on June 11th, 2016 at Georgia Tech Park. Continuing on its goal to put the spotlight on entrepreneurs from emerging countries, Seedstars World expanded its competition to more than 60 countries for 2016 up from the 36 countries of the 2014 edition. Its past participants have raised 20M USD together, providing employment to 360+ employees all around the world.

The regional winners of the local events from each country are invited back to Switzerland to pitch at the final event in March 2017 in Switzerland for a prized 500,000 USD equity investment. The Seedstars Summit will also feature industry-specific tracks in parallel to the general Seedstars World competition like the 500,000 USD travel specific prize awarded at last year’s summit. The Jacobs Foundation is also offering a grant of 50,000 CHF for product customization or a pilot project in the Francophone market.

The jury members will include Aieti Kukava, CEO, JSC Alliance Group Holding, Irakli Kashibadze, Chairman of GITA, Nick Tabatadze, Founder, L79 Ventures, Alexandre Stern, Senior Director and Innovation Man at Lowendalmasai, and Tiffany Obser, Senior Associate at Seedstars World. The event is made possible by the generous sponsorship of the Star Sponsor Alliance Group Holding, Business Information Agency, and Georgia Innovation and Technology Agency. Georgia Society of Investment Professionals has played the role of event organizer in tandem with Alliance Group Holding. Gocha Nikolaishvili, Seedstars Ambassador to Georgia, said in anticipation of the event: “The first time always has special importance and meaning, as Seedstars World will be organizing first event in Tbilisi in cooperation with GSIP (Georgian Society of Investment Professionals). Georgia is very good destination for investors to invest and start a business (for that details can be checked on the website of Georgian National Investment Agency). The government has been making efforts during last few years to support startups and entrepreneurship, an example of one government initiative was the Tech Park Georgia, built under GITA (Georgian Innovation Technology Agency), which is also supporter of the event, providing the venue and funds. The Seedstars local event in Tbilisi has solid support from local organizers in the private sector, notably Alliance Group Holding and BIA Business Information Agency, which will be sponsoring event as a key sponsor for three years starting in 2016. We’re confident that with the support of our partners and sponsors we will make significant impact on the development of the startup ecosystem and entrepreneurship in Georgia.”

The best startup in Georgia will be invited to pitch for the opportunity to compete at the final event. The competing startups cover a wide range of sectors from fintech and hardware to e-learning and travel. The twelve pitching startups include: Treepex, a Green Loyalty Program that plants a tree in exchange for buying partner products, Augep, an augmented reality menu and mobile application, Lingwing, a self-learning system for languages in the e-learning market, Winker, a dating platform to enable people to meet in real life, GoTrip, a web platform to create and share your trip with other travelers, Mosavali, a platform for farmers in emerging markets with learning, decision support and interaction with the agricultural value chain, Investco, a banking platform that takes crowdfunding to capital markets, Pandora’s Box, a hardware and software to measure drifting performance for drivers and racing competitions, MyStartupHelp, an all-in-one web-platform that offers startups informational, educational, promotional, programming, consulting resources, Holo, a multifunctional holographic device for dynamic presentations, Fotorator, an interactive device for the photo printing vending industry, and QuickCash, an online capital provider for SME’s in Georgia with innovative scoring platform and 30 minute processing time.

The basic criteria for applicants stipulates that the seed-stage startups have less than 500’000 USD raised, that it has been less than two years since the startup was founded, and that a MVP exists. Seedstars World is also looking for smart startups that solve regional issues and/or develop profitable products for the global market. With partners such as MEST, Google for Entrepreneurs, and Microsoft, Seedstars World identifies fast-growing and pioneering startup scenes and is on the mission to support regional businesses and their growth. “Seedstars World is a platform connecting investors to the next generation of startup entrepreneurs pulling the spotlight from Silicon Valley and Western Europe. We honestly think the best way to have an impact in emerging countries is by investing and promoting entrepreneurship” explains Alisee de Tonnac, Seedstars World CEO. “We look forward to seeing how the different startup scenes have evolved in a year and the new startups in the country.”download full movie Beauty and the Beast 2017

About Seedstars World
Seedstars World is the most exclusive startup competition for emerging markets and fast-growing startup scenes. It is one of the fastest-growing networks for tech entrepreneurs in the world. Based in Geneva, Switzerland and founded by Alisee de Tonnac and Pierre-Alain Masson, it is supported by the venture builder Seedstars.

For attending the event, register here.

Georgia-Slovakia Business Forum

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H.E.Giorgi Kvirikashvili, Prime Minister of Georgia and H.E. Andrej Kiska, President of Slovakia opened the Georgia-Slovakia Business Forum, which was attended by H.E. Nodar Khaduri, Minister of Finance of Georgia.

discussed issues of Forum were cooperation between the two countries in areas such as energy, information technology, transport, logistics, infrastructure and trade.

” A very important event took place today. The business forum is a good format for Slovak investors to use the opportunities that Georgia has including  the relations with the EU – I mean, Comprehensive Free Trade Area agreement. The meeting is important for the businessmen to learn more about investment opportunities in Slovakia and the Slovak partners proposals. There are great prospects for cooperation between our countries, in different sectors. “- said Khaduri.

The event was organized by the National Investment Agency, the Slovak Investment and Trade Development Agency, the Association of Employers. The partner of the Chamber of Commerce.

Source: Ministry of Finance of Georgia